TRLPC: Jefferies jumps back to the top of LBO league tables

NEW YORK, July 16 (Reuters) - Jefferies moved back to the
top of the U.S. leveraged buyout league tables in the second
quarter after a one quarter hiatus from the spot, according to
Thomson Reuters LPC data, as U.S. regulators' leveraged lending
guidance continues to reshape the market.

The guidelines, which were implemented in 2013 by the
Federal Reserve, the Office of the Comptroller of the Currency
and the Federal Deposit Insurance Corp, are designed to curb
risky lending by banks that could pose a systemic risk and are
allowing unregulated lenders to pick up business from banks.

Jefferies is not overseen by these regulators and is
therefore able to lead highly leveraged loans, helping the firm
top Thomson Reuters LPC league tables for leveraged buyouts for
the second time in three quarters.

"Since the regulatory environment has shifted, Jefferies has
gotten more calls than they would have previously," said a
senior banker. "There's been an opening for them, and they have
taken advantage of it."

Leveraged buyout financing volume has been muted this year
as cash-rich corporate buyers have consistently outbid sponsors
for targets.

First half leveraged buyout financing totaled just $30.8
billion, which is down 40 percent over last year's first half
number of $51.4 billion.

Second quarter volume, in particular, was slow at just $11.4
billion, down 62 percent from $30.1 billion in the same quarter
of 2014, which allows for bigger jumps in league tables.

Jefferies served as a bookrunner on $2.3 billion worth of
deals in the second quarter, giving it a market share of 20
percent, double Morgan Stanley, the second leading bookrunner.
Continued...